Legally avoiding California Sales Tax
I've mentioned in a couple threads that I am looking at a Newmar Baystar. Unfortunately the actual price is coming in ~35K lower than MSRP. From what I understand California charges sales tax on MSRP ...
Forum Discussion
darsben1 wrote:RognBon wrote:
I don't know where you got your information, but California charges sales tax on the actual sales price, not the msrp.
But any trade is not deducted from sale price
So a $250,000 Rv
with a
$100,000 Trade
difference
$150,000
but tax is on $250,000
I don't understand why this would be considered paying taxes on more than you paid for the RV? The RV cost $250,000.
Person A buys the RV and pays cash for the total $250,000. They are taxed on the $250,000.
Person B buys the RV and pays $150,000 cash and trades in their old RV for the remaining $100,000. They are taxed on the $250,000.
Why should person B pay less in taxes than person A?
OP - read page 14 of this pamphlet from BOE. You pay tax on the actual sale price of the vehicle, not on the MSRP. www.boe.ca.gov/pdf/pub34.pdf
